Redemption fine on repair-and-re-export imports was unjustified where the goods were repaired and exported back.

Goods imported solely for repair by re-shelling and re-export were found to have been repaired and subsequently exported, so the basis for imposing redemption fine under the Customs Act was not established. Given the stated import purpose and the actual re-export after repair, the fine was held unjustified and set aside.

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Issues: Whether redemption fine imposed on goods imported for repair and re-export was justified under Section 111(d) of the Customs Act, 1962.

Analysis: The goods were imported for the specific purpose of repair by re-shelling and re-export, and the record showed that they were subsequently exported after repairs. In these circumstances, and having regard to the purpose of import and export back after repair, the basis for sustaining redemption fine was not made out.

Conclusion: The redemption fine of Rs. 25,000/- was not justified and was set aside.

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